This week, the market gave us a tale of two tech titans—and two very different outcomes.
📉 Wednesday, August 27: Meituan (03690) dropped its Q2 earnings. Revenue rose 11.7% YoY, but net profit plunged 89%, crushed by soaring sales expenses and brutal competition in food delivery. The stock tanked 💥📉.
📈 Friday, August 29: Alibaba (BABA) released its Q1 FY2026 results and jumped 12.9% 🚀💰. Investors cheered its cloud growth, AI momentum, and strategic pivots. The surge was swift—and loud.
But the real twist came from Meituan’s CEO Wang Xing, who said:

“In a big competition, being the underdog is the most exciting position to be in. That’s why this is so thrilling.”

🧠 So… Do You Bet on the Underdog or Ride the Surge?
Let’s break it down:
🐾 Why Bet on the Underdog?
Potential for high upside if sentiment flips
Contrarian edge—Buy when others panic
Valuation compression = Room for multiple expansion
Comeback narratives can attract fresh capital
But it’s risky. Meituan’s margins are shrinking, competition is intensifying, and its moat is under siege. The thrill comes with turbulence.
🚀 Why Ride the Major Trend?
Momentum is real—and Profitable[Miser]
Institutional support = Stability
Strong fundamentals (Alibaba’s cloud, AI, e-commerce)
Risk management: You won’t lose sleep over Nvidia or BABA [Heart]
In a macro backdrop full of landmines—Rate cuts, regulatory shifts, geopolitical noise—riding the surge isn’t just safer. It’s strategic.

💬 My Take?
I’m riding the surge. My portfolio favors strength, clarity, and confirmation. Underdogs are exciting—but I prefer risk-adjusted returns over emotional thrill. [Wow]

Bottom Line: Underdogs may roar. But major trends pay the bills. Choose your fighter—but know your risk. 🧭📊